BYD (HKG:1211, SHE:002594) is gearing up for production of its electric vehicles at its new facility in Brazil as early as July, Reuters reported Monday, citing country senior vice president Alexandre Baldy.

Shares rose 1% in Hong Kong during late-morning trading on Tuesday.

The EV maker's goal is to produce 50,000 cars in 2025 at its Bahia facility using imported kits, the report said.

BYD is looking to negotiate lower tax rates for those vehicles, Reuters said, citing Baldy.

BYD exported 22,000 units to Brazil in the first five months to ride on temporarily lower tariffs, the news agency said, citing its calculations.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)